Zacks Investment Research Upgrades Domino’s Pizza (DPZ) to Buy
Domino’s Pizza (NYSE:DPZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Monday. The firm currently has a $276.00 price objective on the restaurant operator’s stock. Zacks Investment Research‘s price objective points to a potential upside of 10.85% from the stock’s previous close.
According to Zacks, “Domino's shares have outpaced the industry in a year’s time, owing to better-than-expected earnings in nine out of the trailing ten quarters. Notably, the third quarter marked the company’s respective 30th and 99th consecutive quarter of positive same-store sales domestically and internationally. Meanwhile, we believe that Domino's solid brand positioning might continue to boost sales in the upcoming quarters. Furthermore, efforts to accelerate the company’s presence in the high-growth international markets bode well. Domino's initiatives on the digital front, increased store counts, focus on re-imaging and other sales-boosting strategies are expected to help sustain the momentum in the months ahead. Earnings estimates for the next year have also gone up over the past 7 days. However, higher costs and negative currency translation are likely to hurt profits.”
Other research analysts have also issued research reports about the company. Cowen began coverage on Domino’s Pizza in a research report on Friday. They set an “outperform” rating and a $290.00 target price for the company. Wells Fargo & Co boosted their target price on Domino’s Pizza from $255.00 to $260.00 and gave the company a “market perform” rating in a research report on Monday, October 8th. They noted that the move was a valuation call. UBS Group reaffirmed a “hold” rating on shares of Domino’s Pizza in a research note on Wednesday, November 7th. Maxim Group raised shares of Domino’s Pizza from a “hold” rating to a “buy” rating and lifted their price target for the company from $305.00 to $310.00 in a research note on Wednesday, October 17th. Finally, Mizuho set a $300.00 price target on shares of Domino’s Pizza and gave the company a “buy” rating in a research note on Wednesday, October 17th. Eight investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus price target of $277.00.
Domino’s Pizza (NYSE:DPZ) last announced its earnings results on Tuesday, October 16th. The restaurant operator reported $1.95 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.75 by $0.20. Domino’s Pizza had a negative return on equity of 11.92% and a net margin of 10.60%. The business had revenue of $786.00 million during the quarter, compared to analyst estimates of $789.10 million. During the same quarter in the previous year, the business earned $1.27 earnings per share. The company’s revenue for the quarter was up 22.1% compared to the same quarter last year. As a group, equities research analysts forecast that Domino’s Pizza will post 8.45 EPS for the current fiscal year.
In related news, CEO Richard E. Allison, Jr. sold 5,000 shares of the business’s stock in a transaction that occurred on Thursday, November 29th. The shares were sold at an average price of $279.31, for a total value of $1,396,550.00. Following the completion of the transaction, the chief executive officer now owns 44,864 shares of the company’s stock, valued at $12,530,963.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 3.97% of the company’s stock.
A number of large investors have recently modified their holdings of DPZ. FMR LLC raised its stake in Domino’s Pizza by 150.2% in the second quarter. FMR LLC now owns 1,184,342 shares of the restaurant operator’s stock worth $334,186,000 after buying an additional 711,035 shares in the last quarter. OppenheimerFunds Inc. raised its stake in Domino’s Pizza by 1,923.4% in the second quarter. OppenheimerFunds Inc. now owns 74,764 shares of the restaurant operator’s stock worth $21,096,000 after buying an additional 71,069 shares in the last quarter. Laurion Capital Management LP bought a new position in Domino’s Pizza in the second quarter worth approximately $433,000. Raymond James & Associates raised its stake in Domino’s Pizza by 22.2% in the second quarter. Raymond James & Associates now owns 24,594 shares of the restaurant operator’s stock worth $6,940,000 after buying an additional 4,471 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd bought a new position in Domino’s Pizza in the second quarter worth approximately $352,000. 90.24% of the stock is owned by institutional investors.
Domino’s Pizza Company Profile
Domino's Pizza, Inc, through its subsidiaries, operates as a pizza delivery company in the United States and internationally. It operates through three segments: Domestic Stores, International Franchise, and Supply Chain. The company offers pizzas under the Domino's Pizza brand name through company-owned and franchised Domino's Pizza stores.
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